The U.S.-based crypto exchange Coinbase;has been sued;by the U.S. Securities Exchange Commission (SEC) nearly one day after the agency filed a lawsuit against rival crypto exchange Binance.;
In the 101-page complaint, the top securities regulator alleged Coinbase of allowing users to trade numerous tokens that were actually unregistered securities.
The tokens in question include Solana (SOL), Cardano (ADA), Polygon (MATIC), Voyager Token (VGX), and The Sandbox (SAND).;
- Since the agency listed the same tokens in the complaint against Binance, the lawsuit is expected to have wider implications for other crypto exchanges listing these tokens.
- The;SEC;also claimed that Coinbase is unlawfully operating as an exchange, a broker-dealer, and a clearinghouse at the same time without registration with the agency, though it is subject to U.S.;securities;laws.;
- The commission believes these three functions should be separated, just as in traditional securities markets.;
- The regulator requested the court to issue an order to force Coinbase to comply with securities laws and give up on the undeserved gains.
- Also, the SEC said Coinbase's staking service is violating its rules.;
- A multi-state task force of regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Caroline, Vermont, Washington, and Wisconsin;has also simultaneously;issued an order against Coinbase, alleging the exchange of violating the securities laws through its staking service.
Before the lawsuit, Coinbase had already entered into a legal battle with the SEC, filing;a petition requesting;the court to force the agency to create a clear framework for digital assets.
- Over the last several months, many crypto exchanges, including Coinbase, Kraken, Bittrex, and Binance, came under increased scrutiny by the SEC.